Increase in wealth in 2023: German households benefited from price gains and higher savings interest rates

Increase in wealth in 2023: German households benefited from price gains and higher savings interest rates

According to a report from www.welt.de, 2023 has been a successful year for Germans in terms of wealth growth. Nominal financial assets increased by 6.4 percent to over 7.9 trillion euros, mainly due to price gains on the stock markets and increased savings interest rates. This trend is expected to continue in 2024, albeit with somewhat less momentum. The savings rate in Germany was 11.3 percent in the first half of 2023 and therefore remained constant compared to the previous year.

These positive developments on the market also have an impact on the financial sector. The increased savings interest rates create incentives for savers to invest more in daily money and fixed-term deposits again. This could lead to more capital flowing into these investments, which in turn increases banks' liquidity. However, the effects of high inflation must also be taken into account, as it often eats up the interest income on interest deposits.

Overall, the positive development of nominal financial assets in Germany shows that the economy is on a solid and sustained growth path. This could increase investor confidence and bring further capital into the market, which could further drive positive developments.